Electric trucks are getting a lot of attention as lawmakers continue to push for cleaner vehicles. And while they definitely have a place in trucking’s decarbonization efforts, particularly in local and short-haul operations currently, there are other alternatives out there.
One of those alternatives is biodiesel, which can be used in existing diesel engines with some modifications.
Joining Jason and Matt this week is Lori Dunn, chief operating officer at Optimus Technologies, who talks about the benefits of biodiesel and how it can help trucking meet its decarbonization goals.
Contents of this video
00:00 10-44 intro
00:30 Biodiesel
02:07 Modification kits for heavy-duty diesel engines
07:31 Biodiesel in cold weather
09:52 Range limitations of EV’s
11:04 Availably of biodiesel
12:25 Meeting ESG goals early
14:49 Cost of converting to biodiesel vs. cost of EV
15:57 Biodiesel fuel efficiency vs. traditional diesel
Jason Cannon:
CCJ's 10-44 is brought to you by Chevron Delo Heavy Duty Diesel Engine Oil. Now there's even more reasons to choose Delo.
Matt Cole:
When it comes to decarbonizing trucking, electric trucks are a hot topic, but they're not the only option.
Jason Cannon:
You're watching CCJ's 10-44. A weekly webisode that brings you the latest trucking industry news and updates from the editors of CCJ. Don't forget to subscribe and hit the bell for notifications so you'll never miss an installment of 10-44.
Hey everybody. Welcome back. I'm Jason Cannon and my co-host on the other side is Matt Cole. Electric trucks have been getting a lot of attention as lawmakers continue the push for cleaner vehicles, but while they definitely have a place in trucking's decarbonization efforts, particularly in local and short haul operations currently, there are other alternatives out there.
Matt Cole:
One of those alternatives is biodiesel, which can be used in existing diesel engines with some modifications. Lori Dunn, Chief Operating Officer at Optimus Technologies joins us this week to talk about the benefits of biodiesel and how it can help trucking meet its decarbonization goals.
Lori Dunn:
At Optimus, we decarbonize the heavy-duty diesel engine. We do a bolt-on upgrade that enables us to use a hundred percent biodiesel in a standard diesel engine. Biodiesel is a really cool kind of diesel that is a biogenic carbon, so we're talking about used sources coming back into cycle again. So animal fats and tallows, used cooking oil, the waste product after you're making ethanol, when we crush a soybean for that protein, either for humans or our feedstock and all of that for animals, what's left over is a waste product of an oil. All of that waste we bring back into a refinery. Some of our partners, Chevron Renewable Energy Groups, others all across North America, they're going to process that and it creates a really cool diesel fuel and as biodiesel and it's readily available, it's good helping local communities reusing a product instead of trashing it, right? We don't have a place for more trash, and then Optimus takes a hold of that, this little miracle fuel, and we make it suitable for a diesel engine.
Jason Cannon:
Now, there are some modifications needed on a truck equipped with a diesel engine in order to make the switch to biodiesel, but they're relatively minor.
Lori Dunn:
So you do need a kit. So what I want to say is please everyone do something. We want to decarbonize. If you don't have the capacity to talk to me right now, I really hope you're on at least a B20 blend. There's a way you can blend it that it can be used right now. But when you're ready to take that step, because combating climate change, your ESG goals internally are important to you, you're looking around at different options. Things don't have to be as hard as we're making them. We don't need to spend millions of dollars on new infrastructure and building things and brand new assets that we don't have mechanics and drivers trained for. What you can do is use your same asset, in your same facility, you have a tank of 100% biodiesel, which is less toxic than table salt. I really hope mechanics and folks love that.
If it gets on our hands, it's a lot easier for us, and then you just get access to that fuel to be filled. You put our bolt-on upgrade on your fuel system itself, and then the drivers really shouldn't notice much difference. So your fuelers, obviously you're going to be fueling your standard petroleum diesel as well as your biodiesel. You're going to see both of those. When the drivers operate, they're not going to see anything. So unfortunately for a fleet manager, there is a little bit of work and that you have to talk to me and I have to get the installs done. However, for your total operations, you're not going to be seeing much of a difference there, and we'll of course train your mechanics on the few little differences, but it's fairly negligible compared to some of the other options and a price you can afford.
So they do need to be separated fuels. We do not blend within the fuel because we want you to know which fuel is going first and foremost in, and then which fuel is being processed through the vector system, be able to run through. So sometimes that means removing the OEM tank and us welding a piece down the middle to make sure they're split and putting that same capacity back on. Some of our customers, largest private fleet in North America has decided to split even saddle that across. So 100 gallon B100, 150 gallon of the ULSD, and that is usually a blend of up to about B20. Honestly, dealer's choice. We could even put them both in line. It's just wherever there's room on the rail, that's what we're finding. And the driver shouldn't notice anything different. There's a little cab display just like you have currently when you're running low on gas, "Hey, we're running low on gas."
Same thing for bio, but they're not doing any switching. If you're going to start up that engine and we're going to grab that waste heat, takes about five minutes in the extreme cold, maybe up to 30 minutes. We're going to grab that waste heat off the engine and condition that tank full of B100, and we're processing this through doing 150 data points every two seconds and making sure this fuel is suitable for a diesel engine. The second it's ready, our computer system turns off that dirty diesel side, that's what I'll call it and opens that 100% biodiesel running straight to the engine. Until you turn that engine off, nothing else is happening, and this is where the one thing the driver should notice.
It's going to keep running for 30 seconds, and that's going to be to switch the lines over and make sure that ULSD of B20, maybe even a renewable diesel if you have access to it, it's hard to come by when you're not in California and it'll switch back so when we start up, we're on the right engine. And you know it's 30 seconds because that is the federally mandated time that you have to do those checklists, so the drivers are sitting there doing their checklists anyway, right?
Matt Cole:
Optimus recently highlighted three municipal fleets utilizing its B100 system during a particularly cold snap in mid-January. Afterword from 10-44 sponsor Chevron Lubricants where he explains how B100 can help the long haul trucking industry.
Speaker 4:
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Lori Dunn:
We loved hearing this harsh weather and I highlighted three of our municipal fleets. I'm talking like we need to make sure even though it's freezing cold, our streets need to be clean, our trash needs to be picked up. There's a lot of safety involved in those two. However, the private fleet, they're also still trying to drive. Just because it's snowing outside does not mean I don't want to be sitting on the couch eating my Cheetos and to get my Cheetos, I need those trucks driving all the way across the US from every facility. So there's both. There's the safety aspect of our public fleets and then there's the ornery-ness of I need my Cheetos and I'll have them, and these private fleets are still making those deliveries happen. The difference is if I'm thinking I would like an EV, a hydrogen, an LNG, all of these pieces, there's a level of infrastructure and reliability that just, it's not really there right now. Because Optimus enables the switch between your petroleum diesel and your biodiesel. It allows you to keep running. You can trust it.
Coolest part is biodiesel, I mentioned it's kind of like a little miracle fuel. It's better for your engine ultimately. So folks are finding it was -17 in Iowa and our fleets were running 89% of the time on 100% biodiesel. That stuff, even petroleum diesel gels up because we're harnessing the power of the heat that already exists on the engine and bringing that in conditioning, we're making everything happier and running better. Biodiesel is actually 40% more lubricating than a standard diesel, so think of the value of having that on your engine running rubbing correctly. When we are thinking of a region, you're having to do it less as often because you're creating half as much gunk in those filters, and this has been tested by folks other than us, you don't want to believe me.
There are other people that have tested it. ADM in particular did a 1.3 million mile study with us. They did five assets on our kit and five assets of their standard in Illinois. They did it over 16 months, easily downloadable on our website, optimustec.com/ADM, and you can read the report that everybody else verified and you can see what actually happens to an engine and over time what happens to that asset. The goal is really get those products across the US whenever you need them to reliably, but also better for the environment, better for your asset.
Matt Cole:
One of the biggest concerns in trucking with electric trucks is the range limitation. Lori says, B100 solves that issue.
Lori Dunn:
I want to highlight, even though I did mention some of the others and we're mentioning EV right now, not being the one for long haul, that's because unfortunately God bless these fleet managers, their jobs just got a little bit harder. One solution got us into this mess. A multitude of solutions is going to get us out, so we're talking EV is a great last mile solution. Please go for it. Hydrogen is still in that early building that adoption stage, more of like the science experimenty way, whereas EV is now about that building out the deployment phase. So let's take them for what they're today in 2024.
Let's understand as of today, right now what their capacity is and instead of waiting for perfect, let's put biodiesel in that long haul. Let's put biodiesel in that snow plow, in that refuse truck, things that can't have the mistakes. Let's do something reliable today, and I seriously hope in 10, 20 years that there is a little bit more parity. But what I hope most is that petroleum diesel is the afterthought, when you think of a diesel engine, you're really thinking of an alternative fuel source.
Matt Cole:
The beauty of biodiesel Lori says is that petroleum diesel can be used in its place if B100 isn't available when you need to fuel.
Lori Dunn:
So 2023 availability. I'll start there. If you're on a long run, everyone filled up, they have 100 gallons of B100, 50 gallons of petroleum diesel. They're running, it's time to refuel. Can't find it? Just plop some petroleum diesel in that biotank. It's fine. The goal is to keep you running and when you have access to that B100, refill that right up and you're going to decarbonize that part of your load. Best part about biodiesel in terms of us talking about infrastructure being built, if you go to any of the large travel centers, they have three 20,000 gallon ULSD tanks underground. They also have a 20,000 gallon B100 tank because when you're going and you're getting that B5 to B20 blend that many people are using, and again, please do it, any bit helps. It helps you financially with those RINs credits, but it also is good for the environment.
I really care about the environment, so please, please focus there. However, once we get enough of these trucks running, all it takes is a lane to pump that straight B100 straight up because it's already there. So right now it's really chicken and egg situation. However, many fleets want to adopt us as fast as they can. More and more lanes will pop, but a few strategic ones are coming.
Jason Cannon:
With a lot of fleets now implementing ESG goals, Laurie says biodiesel can be a way to meet those goals early.
Lori Dunn:
Climate wise, let's start with that. If you have ESG goals or if you are me and you just really want to have trees in about 10 years, you're focused on that and you're seeing people saying, we're almost at 2025. Some people have minor goals here, 2030 being the bigger, and now we're seeing more and more people with the 35, 40 et cetera goals. You can do that today. You can hit that goal today. That's the biggest thing about biodiesel is because it's readily available, because there is a smart, simple and cost-effective solution right now, you can just bolt it on, you can achieve that goal this year. And this is where I want folks to think about going to your shareholders, whether that is your constituents and your public fleet or to your board in a private fleet. If you effectively use the capital that you've been given and you hit that goal in a year or two, instead of it taking you 20 years, just imagine how much more funds they have for you to try out some of the other options.
The science experimenty side of a hydrogen or the really valuable side of an EV in a short haul and making sure we have that renewable source. So they're climate wise, you're getting a reduction, 90% carbon reduction. You imagine you can do it on all of your fleet in about a year or two. Like, "Hey, I did it. My goal is 70% in 20 years, I did 90% in two." The math is right there for you. For the engine itself, it's more lubricating. It's better for your engine, it is better for the environment because of the output. It's the same, it's the biogenic carbon, so it was already there. You're reusing something that already existed. You're reducing your need for regens, you're having to switch less. When your mechanics are touching it, less toxic than table salt. This is a healthier fuel, a different flashpoint, so it's even a safer fuel.
I don't want to spend my whole time here feature dumping on you, but there's a lot of good reasons why an appropriately conditioned biodiesel is better for a diesel engine. What I don't want people to walk away with is like, "Hey, that gal from Optimus said just pump B100." No, I did not. Please utilize the vector system to make sure that biodiesel is safe for your diesel engine and use a trusted source that can help you make sure that happens.
Matt Cole:
Maybe the biggest question from fleet managers is of course, how much would it cost to optimize my existing diesel trucks for biodiesel?
Lori Dunn:
So let's say right now if I'm buying a truck and it's 180K. 180K for a new Volvo, fresh off the line, all the bells and whistles. Volvo's going to get mad at me. Let's say it's that, or I'm talking to any of the EV manufacturers and they're saying instead of that 180 number, they're saying a million. Let's say that. Instead of one EV, I could upfit a little over 30 of your current diesel engines. So instead of one truck decarbonized, we're talking 33 in your fleet for the same cost and more decarbonization, because I'm not just talking your scope 1 emissions, I'm talking scope 1 and 3, I'm really talking full cycle. And whereas when you look at the full cycle of an EV, I understand there's no tailpipe emissions, but we are forgetting that renewable source and all the manufacturing production that went into place. So if you want true carbon reduction and if you would like to 30X your investment, the math is kind of right there for you.
Jason Cannon:
Fleet switching to biodiesel will see a slight decrease in fuel efficiency compared to a traditional diesel if you track it by the hour. But Lori says there are actually long-term efficiency gains on the table. The cost of biodiesel is also on par with that of petroleum diesel.
Lori Dunn:
Plan on about 5% less efficiency if I'm tracking it hour by hour. The difference, and please have folks check out the ADM report, because instead of checking hour by hour, because that is expected about 5% efficiency. Because it's so clean, because you're doing half as many regions, if you track it month by month, you're actually seeing that biodiesel is about 5% better because we're not having to utilize that regen system. So it's really about how you look at the data and which point you're mapping to. So yeah, 5% less hour by hour, month by month, 5% better. Right now you're looking at B100, just a generic across the US cost parity. Currently, there is a lot cost parity. Some states couple cents over, some states couple cents under. We're talking places with LCFS credits. Actually, the customer out in Oregon right now, who's saving 90 cents a gallon. Talk about your ROI. 90 cents a gallon.
It's ludicrous what you're able to do. Some states, places like Texas, have a 20 cent credit. That's a great incentive there. Many of our customers are deep, deep focused on the ESG result, and when they see the cost reduced from that B100, it's honestly just a joy. They're just so happy. And now that we're moving, we have all these early adopters that have proven this and it's exciting moving forward, now we're getting that next tier of folks that are actually saying, "Hey, hold on. Here's the ROI. I can actually talk ROI here, not just CO2 reduction." It's an interesting place for Optimus to be and really spreading that out.
Jason Cannon:
That's it for this week's 10-44. You can read more on CCJdigital.com while you're there. Sign up for our newsletter and stay up to date on the latest in trucking industry news and trends. If you have any questions or feedback, please let us know in the comments below. Don't forget to subscribe and hit the bell for notifications so you can catch us again next week.